Deposit interest rates reach 62.5% per annum
JAKARTA (JP): Domestic commercial banks have raised interest rates to as high as 62.5 percent per annum for one-month deposits following the central bank's increase in promissory note (SBIs) rates Wednesday.
But the high interest rates have yet to lure many new depositors.
A front office official at the state Bank Ekspor Impor Indonesia (Bank Exim) said that although there was an increase in the number of people placing their funds in one-month deposits, which offered the biggest yields, it was smaller compared to the influx of deposits last month when the rates were raised to as high as 55 percent per annum.
"There has been no rush. I think most people already placed their money in time deposits last month. I don't think they will deposit more this time," he told The Jakarta Post.
Bank Exim raised its rate for one month deposits to 62.5 percent, up from its previous level of 55 percent.
The bank increased its three-month deposit rate to 48.5 percent, up from 37.5 percent, while its six-month and 12-month interest rates jumped to 40 percent from 25 percent and 23 percent respectively.
State Bank Negara Indonesia (BNI), listed on the Jakarta Stock Exchange, maintained its old rates, however. The bank kept its one-month deposit rate constant at 52.5 percent, while its three- month and six-month deposit rates stayed at 35.5 percent and 24 percent respectively.
Bank Central Asia (BCA), the country's largest private bank, raised its one-month deposit rate to 58 percent, up from 50 percent, and its three-month rate to 46 percent, up from 35 percent.
A BCA customer service official said many of the bank's customers had complained about the increase because they did not expect it so soon.
Many customers could not benefit from the higher rates because most of their funds were already placed in one-month deposits, he said.
BI had raised its SBI rates three times in the first five months of this year. The last increase was on April 22.
On Wednesday, BI again raised the interest rates on its SBIs for all maturities by a range of 4 to 12 percentage points in an effort to stabilize the rupiah and to curb inflation.
BI allows commercial banks to raise their savings or time deposit interest rates within 25 percentage points of prevailing SBI rates. But commercial banks made a consensus last month to offer interest rates no higher than five percentage points above SBI rates.
Several banks said they still maintained their old rates despite the fresh increases in the SBI rates.
But middle-sized banks like Bank Putra Surya Perkasa (Bank PSP) have raised their interest rates believing it was the best way to compete for tight public funds. The bank raised its one- month deposit rate to 58 percent, its three-month deposit rate to 44 percent, six-month rate to 34 percent and 12-month rate to 33 percent.
State Bank Bumi Daya also increased its interest rate for one- month deposits to 60 percent from 52.5 percent, while its three- month deposit rates rose to 46 percent from 36 percent.
Publicly listed Bank Bali offered various deposit rates for all maturities depending on the amount deposited. The bank's one- month rates are 45 percent for deposits between Rp 5 million and Rp 25 million, 50 percent for between Rp 25 million and Rp 100 million, 52.5 percent for between Rp 100 million and Rp 1 billion and 55 percent for deposits over Rp 1 billion. (gis/aly)